TMI Blog1997 (12) TMI 521X X X X Extracts X X X X X X X X Extracts X X X X ..... ed December 26, 1995. 3. According to the petitioners their salary was paid irregularly and in part. The respondent had paid ₹ 50,000 towards part payment of salary for the month of March, 1996. Because, it was enhanced to ₹ 75,000 per month from the month of March till the date of filing the petition, the respondent-company did not pay the salary at the rate of ₹ 75,000 per month. They have resigned from the post of trainees/captains through resignation letter dated June 23, 1996. But the resignation letter is yet to be accepted. The respondent-company did not pay the due salary in spite of statutory notice sent separately by both the petitioners on June 26, 1996. The respondent-company has neglected to pay the salary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Board Limited AIR 1996 MP 85 , has urged that the salary is a remuneration and not a debt and, therefore, the petition is liable to be dismissed on this ground alone. It has been further contended that the provisions of section 433 of the Companies Act could not be pressed into service for recovery of debt particularly when there is a bona fide dispute raised by the company. 8. In the case of Kesoram Industries and Cotton Mills Ltd. v. CWT [1966] 59 ITR 767(SC) , the apex court, after discussing various decisions, has observed that (pages 780 and 787) : a debt means a sum of money which is now payable or will become payable in future by reason of present obligation debitum in praesenti, solvendum in futuro. A debt involves ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he event an employee resigns and does not work after submission of the resignation. 11. Clause 4 of the agreement in question speaks that a trainee would be liable to pay compensation towards liquidated damages in the event of his failure to complete the training. What amount of liquidated damages the employee has to pay has been tabled at the foot of clause 4 of the agreement in question. Clause 6(e) of the agreement in question says that if the employee resigns during the period of training or while in service of the company or fails to fulfil his obligations in respect of training and employment for the specific period without the consent in writing of the company, he shall be liable to pay liquidated damages in addition to the damage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the respondent has spent huge amounts on the petitioners for their training and they are bound by the agreement executed by them. Though there is no specific allegation regarding the claim of damages reference to the agreement has been made and, therefore, it cannot be said that the affidavit by way of evidence has been given without pleadings and, therefore, it should be ignored. In the service regulations the procedure for accepting the resignation has been described. From a perusal of this clause it is revealed that the resignation once accepted by the board of directors cannot be revoked. But it further says the employee will get his salary till the last day he has actually worked and the conditions laid down and accepted by the emp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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